http://www.timesonline.co.uk/tol/mon...cle5404060.ece
INDIVIDUALS struggling to pay their tax bill by January 31 will be allowed to defer it without incurring penalty charges.
In the prebudget report last month Alistair Darling, the chancellor, launched a scheme that allows companies to delay paying their tax bill until later in the year.
Some 10,000 businesses have already delayed making payments under the scheme, known as the Business Payment Support Service (BPSS).
Revenue & Customs yesterday said this scheme was now available to 10m individuals who use the self-assessment system to pay tax, such as free-lance workers, contractors and people with income from buy-to-let properties or other investments.
Until now anyone who failed to pay tax due under the self-assessment by the end of February was liable for a 5% surcharge on the outstanding amount. A second 5% penalty was added if the debt had not been paid by the end of July.
“The service is primarily available to companies and self-employed people, but can be used by anyone who is having difficulty meeting their tax liabilities,” said a Revenue & Customs spokesman.
“We’re urging all those who think they may not be able to pay what they owe by January 31 to contact us. We’ll be able to show greater leniency than in previous years.”
Taxpayers allowed to defer payment under the BPSS will still be charged interest on the outstanding amount.
Revenue & Customs charges 5.5% for income tax, National Insurance, capital-gains tax and stamp duty; 4.25% for corporation tax and 3% for inheritance tax.
Mike Warburton, senior tax partner at Grant Thornton, the accountants, said: “This is a farsighted and sensible approach by the Revenue.
“I’m hearing stories of real hardship from people struggling to pay their tax bills at the moment.”
